TSX:LAM

Stock Analysis Report

Laramide Resources

Executive Summary

Laramide Resources Ltd. explores for and develops uranium projects in Australia and the United States.

Rewards

Earnings have grown 26.2% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Does not have a meaningful market cap (CA$30M)



Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Ur-Energy

TSX:URE

Share Price & News

How has Laramide Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LAM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

LAM

-1.6%

CA Oil and Gas

-0.2%

CA Market


1 Year Return

-51.9%

LAM

3.6%

CA Oil and Gas

9.4%

CA Market

Return vs Industry: LAM underperformed the Canadian Oil and Gas industry which returned 5.3% over the past year.

Return vs Market: LAM underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

LAMIndustryMarket
7 Day-2.6%-1.6%-0.2%
30 Day-5.0%-1.3%1.8%
90 Day-2.6%8.6%6.3%
1 Year-51.9%-51.9%8.2%3.6%12.9%9.4%
3 Year-63.5%-63.5%-7.5%-17.2%17.1%6.5%
5 Year-37.7%-37.7%-6.6%-21.5%37.3%17.2%

Price Volatility Vs. Market

How volatile is Laramide Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Laramide Resources undervalued compared to its fair value and its price relative to the market?

0.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LAM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LAM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LAM is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: LAM is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LAM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LAM is good value based on its PB Ratio (0.4x) compared to the CA Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Laramide Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-6.4%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Laramide Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Laramide Resources performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAM is currently unprofitable.

Growing Profit Margin: LAM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LAM is unprofitable, but has reduced losses over the past 5 years at a rate of 26.2% per year.

Accelerating Growth: Unable to compare LAM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LAM is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (16.5%).


Return on Equity

High ROE: LAM has a negative Return on Equity (-2.91%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Laramide Resources's financial position?


Financial Position Analysis

Short Term Liabilities: LAM's short term assets (CA$910.8K) do not cover its short term liabilities (CA$5.4M).

Long Term Liabilities: LAM's short term assets (CA$910.8K) do not cover its long term liabilities (CA$10.0M).


Debt to Equity History and Analysis

Debt Level: LAM's debt to equity ratio (13.6%) is considered satisfactory.

Reducing Debt: LAM's debt to equity ratio has increased from 6.9% to 13.6% over the past 5 years.


Balance Sheet

Inventory Level: LAM has a high level of physical assets or inventory.

Debt Coverage by Assets: LAM's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LAM has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LAM has less than a year of cash runway if free cash flow continues to reduce at historical rates of -12.2% each year


Next Steps

Dividend

What is Laramide Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LAM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LAM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LAM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LAM's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Laramide Resources's salary, the management and board of directors tenure and is there insider trading?

14.3yrs

Average board tenure


CEO

Marc Henderson (59yo)

24.7yrs

Tenure

CA$225,000

Compensation

Mr. Marc Charles Henderson, BA Economics, CFA, has been the President and Chief Executive Officer of Laramide Resources Ltd. since 1995. He serves as the Chief Executive Officer and President of Absolut Re ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD172.21K) is about average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Board Age and Tenure

14.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: LAM's board of directors are seasoned and experienced ( 14.3 years average tenure).


Insider Trading

Insider Buying: LAM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$290,00117 Jan 20
Marc Henderson
EntityIndividual
Role
Chief Executive Officer
President
Shares1,450,000
Max PriceCA$0.20
BuyCA$44,96416 Jan 20
D. Patterson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250,000
Max PriceCA$0.18
BuyCA$13,48916 Jan 20
John Booth
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares75,000
Max PriceCA$0.18
BuyCA$12,37116 Oct 19
Marc Henderson
EntityIndividual
Role
Chief Executive Officer
President
Shares60,000
Max PriceCA$0.21
BuyCA$100,00025 Aug 19
Marc Henderson
EntityIndividual
Role
Chief Executive Officer
President
Shares400,000
Max PriceCA$0.25
BuyCA$37,50023 Aug 19
John Booth
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares150,000
Max PriceCA$0.25
BuyCA$100,00023 Aug 19
Marc Henderson
EntityIndividual
Role
Chief Executive Officer
President
Shares400,000
Max PriceCA$0.25
BuyCA$6,00023 Aug 19
Greg Ferron
EntityIndividual
Shares24,000
Max PriceCA$0.25
BuyCA$9,60022 Jul 19
Marc Henderson
EntityIndividual
Role
Chief Executive Officer
President
Shares40,000
Max PriceCA$0.24
BuyCA$18,87507 May 19
Raffi Babikian
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$0.38
BuyCA$20,79015 Apr 19
Marc Henderson
EntityIndividual
Role
Chief Executive Officer
President
Shares50,000
Max PriceCA$0.42

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.


Management Team

  • Marc Henderson (59yo)

    President

    • Tenure: 24.7yrs
    • Compensation: CA$225.00k
  • Chris Irwin (45yo)

    Company Secretary

    • Dennis Gibson (70yo)

      Chief Financial Officer

      • Tenure: 13.8yrs
      • Compensation: CA$100.00k

    Board Members

    • D. Patterson (58yo)

      Independent Director

      • Tenure: 24.6yrs
      • Compensation: CA$24.00k
    • John Cook (79yo)

      Member of Advisory Board

      • Tenure: 14.3yrs
    • Marc Henderson (59yo)

      President

      • Tenure: 24.7yrs
      • Compensation: CA$225.00k
    • John Booth (53yo)

      Non-Executive Chairman

      • Tenure: 16.1yrs
      • Compensation: CA$42.00k
    • Michael Connor

      Member of Advisory Board

      • Tenure: 14.3yrs
    • J. Ward

      Member of the Advisory Board

      • Tenure: 14yrs
    • Raffi Babikian

      Independent Director

      • Tenure: 0.8yrs

    Company Information

    Laramide Resources Ltd.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Laramide Resources Ltd.
    • Ticker: LAM
    • Exchange: TSX
    • Founded: 1980
    • Industry: Coal and Consumable Fuels
    • Sector: Energy
    • Market Cap: CA$31.428m
    • Shares outstanding: 165.41m
    • Website: https://laramide.com

    Number of Employees


    Location

    • Laramide Resources Ltd.
    • The Exchange Tower
    • Suite 3680
    • Toronto
    • Ontario
    • M5X 1B1
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    LAMTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
    L4RDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
    LMRX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988
    0V3PLSE (London Stock Exchange)YesCommon SharesGBCADSep 1988
    LAMASX (Australian Securities Exchange)CDI NPVAUAUDApr 2013

    Biography

    Laramide Resources Ltd. explores for and develops uranium projects in Australia and the United States. Its flagship project is the Westmoreland property located in Queensland, Australia. Laramide Resources Ltd. was incorporated in 1980 and is headquartered in Toronto, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 00:09
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.